According to Warren Buffet, “the language of business is accounting”
Whilst watching this week’s edition of Dragons Den, it struck me how many of the applicants have little or no understanding of the “numbers” in their business. Even businesses who manage to secure funding for what is clearly a good opportunity for the dragons would appear to have little or no knowledge of their finances or indeed the impact any decisions they may be making will have on their cash flow. Put quite simply they do not understand why “profit does not equal cash”!
Typically a business owner will shy away from thinking about cash flow, and very often they will only address once they have had a crisis. Of course the crisis could lead to the failure of the business!
If they don’t understand what their accounts are telling them they must spend time learning how to do so, because they may not have a Dragon to steer them through!
Get a handle on your numbers!
This article was written by Mary Carter, who along with husband John, owns the Business Fit Club
Business Fit Club was formed to provide an environment where you can sit down with like-minded people and discuss your business in a secure environment, whilst learning and working on your business growth.
Working in isolation can be a lonely place and there is always the danger that by not interacting you will lose creativity in your business. New ideas and business development always come from talking to other people.
It is important that business owners have their own support network and groups outside the business because it will not only help psychologically, but it will also help their business.
We deliver a unique blend of:-
Business – cost effective high quality management training
Fit - practical support to ensure implementation of growth strategies
Club – networking platform for collaboration between members
The “do nothing” approach is simply not an option in the current economic situation!!
Member since: 9th July 2012
Hi, We are Phil and Gill Chappell. We own the Best of Henley-on-Thames. We live in Henley so would love to hear your views and opinions about all things Henley.